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CALGARY, ALBERTA -- (Marketwire) -- 02/11/13 -- CanAm Coal Corp. (TSX VENTURE: COE)(OTCQX: COECF) ("CanAm" or the "Company") is pleased to report coal production and sales for the year ended December 31, 2012. Consolidated Q4 2012 coal sales were 154,000 tons, a 95% increase over Q4 in the prior year. For the year ended December 31, 2012, consolidated coal sales were 455,000 tons, a 73% increase over the prior year. Q4 coal production was a record 174,000 tons, including 24,100 tons of metallurgical coal.
Three Month Period Year Ended Ended Dec 31 Dec 31 Dec 31 Dec 31 2012 2011(i) 2012 2011 ---------------------------- ------------------------Metallurgical coal 21,168 14,925 68,182 56,950Thermal coal 132,590 63,848 387,205 206,446 ---------------------------- ------------------------Total 153,758 78,773 455,387 263,396 ---------------------------- ------------------------ ---------------------------- ------------------------Note: CanAm holds 80% ownership in Birmingham Coal & Coke (BCC) followingits acquisition of an additional 30% interest, effective July 1, 2012. As atthat date, CanAm began consolidating the financial results of BCC inaccordance with generally accepted accounting principles and, accordinglythe above information is presented on a consolidated basis and includes 100%of BCC's sales and production volumes.(i) Restated to reflect a comparable October to December 2011 quarter. Lastyear's reported quarter only comprised two months (November & December2011).
The significant increase in both sales and production is attributable to a combination of a) an increase in the Company's ownership in BCC, which was effective July 1, 2012, b) improved production performance at our existing mines c) production from our new Old Union 2 mine, which commenced operations at its first pit in late October, and d) improved strip ratios. Q4 production exceeded sales by approximately 20,000 tons. This was mainly attributable to reduced sales in the latter part of December as a number of our customers reduced hours or closed operations during the Christmas period, which impacted December sales. These customers accelerated their shipment schedules in January 2013 to make up for the shortfall. Sales of metallurgical coal were up 42% from the prior year and were 37% higher than in Q3 of 2012.
During Q4, the Company experienced strong production performance at its Powhatan, Bear Creek and Old Union mines. Management and operational changes instituted in the first half of the year were a key factor explaining this improvement, particularly at Powhatan. As disclosed in our Q3 MD&A, the Company took the decision in Q4 to temporarily suspend operations at the Gooden Creek mine and to move forward the start dates of its second and third pits at the Old Union 2 mine from mid-2013 to Q1 2013. The Company is pleased to report that both pits entered production in late January. Mining at Old Union 1 is substantially complete and production will cease by the end of February 2013.
